Roll over your 401(k) online, or speak to a rollover concierge. We’ll call your current plan provider together to begin the process.
Remember that a traditional, tax-deferred 401(k) should be rolled over to a traditional IRA (or else you will have to pay taxes on it).
No matter how you roll over, at Betterment you’ll benefit from personalized investment advice, automated investing, tax-smart tools, and transparent, low fees.
Rolling over a 401(k) shouldn’t be a big headache, but for many people it is—and sheer dread (or lack of information) can lead you to avoid rollovers altogether.
In fact, when you want to complete a 401(k) rollover, your former employer may put up roadblocks, according to a 2013 Government Accounting Office (GAO) report.
The GAO also found that your former employer won’t explain all the possible alternatives, might mislead you about account charges, or encourage you to roll your 401(k) over to an Individual Retirement Account (IRA) within the same institution, even if it’s not the best option for you.
We offer a better solution. By rolling over your 401(k) to Betterment, you’ll experience a fast and easy rollover process. Afterward, you’ll benefit from an automated investment engine that keeps you on track to meet your goals, offers transparent, low-cost investment advice, and uses tax-efficient tools to maximize your money’s growth and returns.
You’ll also benefit from an investment manager who is a qualified fiduciary. This means that you’ll receive transparent advice that is in your best interest, and not swayed by outside fund providers who offer commissions for investment product recommendations.
How to Roll Over Your 401(k) to Betterment
Betterment does not charge a fee for rolling over your old 401(k).
The first step is to create a Betterment account, and then you can start your rollover online. Get started by clicking “Start Rollover” at the top right-hand side of your Summary tab. We’ll send you a personalized email with all the steps, including how to transfer your 401(k) funds to Betterment.
You’ll want to contact your 401(k) provider and let them know that you’re rolling over your funds to Betterment.
Your provider will then release your 401(k) funds by issuing a check—either directly to us, or sent to you, which you can then forward to us at the address here and also provided in your email. The same fund transfer process applies for any other employer-sponsored plan.
Apples to Apples
Remember that a traditional, tax-deferred 401(k) should be rolled over to a traditional IRA (otherwise your rollover funds may be subject to taxes). Though rarer, funds from a Roth 401(k), can be rolled over to a Roth IRA.
If you’re not sure what type of retirement account you have, and which rollover account to set up, our guide makes it really easy and will help you find out your account type.
Knowing your account type is important. For example, if you try to roll over a 401(k) to a Roth IRA, it’s considered a Roth conversion and you’ll likely owe taxes on that transfer of funds.
(If you’re wondering about how to roll over an existing IRA to Betterment, you can do that with us as well.)
Ask About Fees
While it’s free to initiate a Betterment IRA rollover, your 401(k) provider may charge you for closing your account. As you’re starting a partial rollover of your 401(k) funds, ask your current plan provider whether you will incur any fees.
Once your Betterment rollover account is setup, you’ll begin to benefit from some of the lowest investing fees in the industry.
Whatever you do, don’t procrastinate or let your investments sit idly by with your company’s 401(k) provider. Roll your 401(k) over to Betterment now.
When deciding whether to roll over a retirement account, you should carefully consider your personal situation and preferences. The information on this page is being provided for general informational purposes and is not intended to be an individualized recommendation that you take any particular action.
Factors that you should consider in evaluating a potential rollover include: available investment options, fees and expenses, services, withdrawal penalties, protections from creditors and legal judgments, required minimum distributions, and treatment of employer stock. Before deciding to roll over, you should research the details of your current retirement account and consult tax and other advisors with any questions about your personal situation.
More From Betterment:
How to Roll Over Your 401(k) to Betterment
Betterment makes rolling over your 401(k) simple and efficient. Get started online, or with a rollover concierge.
Are You Overwhelmed With 401(k) Paperwork? The RETIRE Act Can Help
Currently, you must opt-in to receive 401(k) statements electronically, instead of via snail mail. A proposed law could change that, making e-statements the norm and saving the industry millions in the process.
2019 Retirement Plan Contribution Limits and Rules
For 2019, the IRS introduced changes to IRA and 401(k) plan contribution limits and income thresholds. See how these changes might affect your retirement goals.
Explore your first goal
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.
How would you like to get started?
Your first step toward a smarter investing future starts here.
Create a Betterment account
Go ahead and join the smart, modern way to invest.
See what we can do for you
Tell us a bit about yourself, and we'll show you the benefits of investing with us.
Get a free investing checkup
Help us get a sense of your investing approach and see how you could improve.
Transfer a 401(k) or an IRA
Move an existing retirement account into a Betterment IRA.
Download the mobile app
Enjoy the Betterment experience anywhere on the go.